(SEU) in terms of knowledge and belief. It is shown that observable behavior displays sensitivity to ambiguity if and only … if knowledge and belief disagree. In addition, such an epistemic interpretation of ambiguity leads to dynamically …

This paper investigates how the general public behaves when confronted with low probability events and ambiguity in an … insurance markets. When it comes to willingness to pay, people exhibit ambiguity seeking behaviors. They are willing to pay more … under risk than under ambiguity (embracing here imprecision and conflict), revealing that people consider ambiguous …

We review recent advances in the field of decision making under uncertainty or ambiguity. …

This paper assesses the quantitative impact of ambiguity on the historically observed financial asset returns and … distribution on consumption and dividends in the next period as ambiguous, an ambiguity that is endogenously dynamic, e ….g., increasing during recessions. We calibrate ambiguity aversion to match only the first moment of the risk-free rate in data and …

This paper assesses the quantitative impact of ambiguity on the historically observed equity premium. We consider a …'s beliefs about the dividend/consumption process is ambiguous. Second, the agent's preferences are sensitive to this ambiguity … calibrate the level of ambiguity aversion to match only the first moment of the risk-free rate in data, and ambiguity to match …

This paper assesses the quantitative impact of ambiguity on the historically observed financial asset returns and … dividends next period as ambiguous. We calibrate the agent's ambiguity aversion to match only the first moment of the risk … outcomes. Ambiguity aversion accentuates the conditional uncertainty endogenously in a dynamic way, depending on the history; e …

assets with short-selling where there is risk and ambiguity. Agents have Bewley's incomplete preferences. As an inertia … risk adjusted sets of probabilities intersect. The more risk averse, the more ambiguity averse the agents, the more likely …